More Businesses Sued for Overtime Violations

One of the issues revolves around how technology, including smartphones, have evolved to allow employees to work outside of the office.

April 18, 2012

WASHINGTON, D.C. - In 2011, American workers filed 32% more lawsuits alleging businesses violated wage-and-hour laws than in 2008. Experts point to a recovering economy that has necessitated more for less as part of the reason, USA Today reports.

Employees in the suits claim to have worked more than 40 hours weekly sans overtime pay after being made to work after clocking out; having their job misclassified to avoid overtime regulations; and working from home via smartphones and other technology. "The recession [put] more pressure on businesses to squeeze workers and cut costs," said Catherine Ruckelshaus, legal co-director of the National Employment Law Project.

As a result of the lawsuits, employers are on the defense, ensuring lines exist between managers and employees, and even how company-issued smartphones and telecommuting can be used. Meanwhile, the courts have to juggle old labor rules with new technology, such as smartphones that allow workers to work outside of the office itself.

The U.S. Supreme Court is getting in on the issue by hearing a class-action lawsuit against GlaxoSmithKline filed by pharmaceutical salespeople, which are usually classified as not entitled to overtime pay. The sales reps claim they have been misclassified, a position the U.S. Department of Labor agreed to in another case.

The upswing in lawsuits relating to overtime pay point to how outdated the 1938 Fair Labor Standards Act (FLSA) is in a time when many workers crave flexibility to work outside of the office. "The law has not kept pace with the contemporary workplace," said Randy MacDonald, who heads human resources at IBM.

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